When calculating declining balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the first year of ownership, this error would cause:

the period end assets to be overstated.

the period's depreciation expense to be overstated.

the period end assets to be understated.

None of these is correct

2-

What would be the depreciation expense using double declining-balance to compute the expense for year 2 of a machine costing $20,000, when residual value is $3,000, and useful life is 4 years?

$3,600

$6,000

$5,000

$3,000